What Information ISN’T On Your Credit Report?
One of the most important things to realize about your credit report is that it does NOT contain your credit score. Creditors and other companies report your payment history to the three credit bureaus.
It is your right and responsibility to review and potentially dispute any incorrect information on that report. However, credit scores typically need to be purchased separately, although you can sometimes view yours for free through a promotion from one of your credit cards or bank accounts.
The FICO score is the most common credit scoring model used by lenders. But the three credit bureaus have created an increasingly popular model called the VantageScore.
The most recent version of this is VantageScore 3.0. Many websites offer free educational credit scores, but the algorithms aren’t the same as the mainstream models, so the scores can vary greatly from the one your lender actually uses.
Remember that your credit report directly affects your credit score, but the two are separate items. Start off by reviewing your credit report and making sure all of the information there is accurate.
Then, when you’re ready, consider purchasing your credit score to see where you stand. By then you should have a good idea of what factors are hurting or helping your score the most, and which ones you need to continue working on to improve.
This article was originally published on AAAcreditguide.